Assam: PNB Housing Inaugurates First-Ever Branch In Guwahati

PNB Housing Finance Ltd. and Aadhar Housing Finance Ltd. announced their foray into the Northeastern region of India with the inauguration of their first-ever branch in Guwahati, Assam, signalling the company's strategic expansion into a market it believes holds immense potential for affordable housing finance.  

Girish Kousgi, Managing Director and CEO of PNB Housing Finance Ltd. shared these developments in an exclusive interview with Business North East (BNE). He revealed ambitious plans to establish nine more branches across the Northeast in the coming 12 months.

Highlighting the company's foray into the affordable housing segment, Kousgi stated that this business vertical was initiated approximately 27 months ago and has already achieved a loan book of around Rs 5,000 crores. He explained the rationale behind this expansion, noting, "We have explored all the regions like South, North and West, now it is the right time for us to get into Northeast and try to expand business in Northeast and try to develop the market."

Kousgi underscored the significant growth opportunities within the Northeastern mortgage industry. "Northeastern Region has a lot of potential as the entire mortgage industry contributes 1 per cent, and the total mortgage book is about Rs 35,000 cr while the entire market is 36 lakh crore. So, I believe if housing finance companies open more branches and do business in this region, this Rs 35,000 will grow to about Rs 1.5-2 lakhs in no time."

The company's primary focus in this segment is on serving the Economically Weaker Section (EWS) and Low-Income Group (LIG). Kousgi elaborated on their target clientele, citing examples such as "somebody who's into pan shops, small retailers, somebody who has a medical shop, somebody who's into small, let's say, hotelier." He acknowledged the unique financial profiles of these customers, noting that many in business may not declare their full income, while salaried individuals might receive cash salaries or have lower declared incomes.

In light of this, PNB Housing Finance's average interest rate for these segments is around 12.4-12.5 per cent, with rates varying based on customer risk and specific products, generally ranging between 12-13 per cent.

Responding to a query about inclusive homeownership, Kousgi affirmed the company's commitment to supporting women borrowers and weaker sections of society.

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"Yeah, we do have a lot of schemes for women. So, there's a concession as well," stated Kousgi, who also highlighted the Pradhan Mantri Awas Yojana (PMAY) Urban 2.0, a Government of India initiative driven by the National Housing Bank (NHB) and other entities.

The scheme offers a subsidy of Rs 1.8 lakhs to eligible customers over five years, making home loans more accessible. "So, this scheme is very attractive, and a lot of customers come forward to avail home loans. And we participate in this scheme, and we try to source as many customers as possible," Kousgi added.

With this strategic entry and planned expansion, PNB Housing Finance and Aadhaar Housing aim to tap into the substantial untapped potential of the Northeastern housing finance market, focusing on providing affordable housing solutions to a wide range of customers.